Category Archives: economic doom

Rocky Anderson 2012

So I was really looking forward to writing-in “Mike Check” on my ballot next November, but looks like now there’s a chance to vote for a breathing person, albeit perhaps just as symbolically.

Anderson, candidate of the newly formed Justice Party (the website currently leaves much to be desired, but is clearly a work in progress) is genuinely anti-war, upfront about his opposition to the war on drugs, a staunch defender of civil liberties & and the environment, and— perhaps most importantly— committed to getting money out of politics. He will not accept any campaign contributions in excess of $100, stating “We launched the Justice Party because the entire system is so corrupt … It’s so diseased. We know that the public interest is not being served by anyone in the system right now, particularly the two dominant parties who have sustained this corrupt system and who are sustained by it.” Remember: Obama took more money from Wall St. than any other candidate, and despite widespread, systemic fraud, no major banksters have yet been prosecuted, much less sent to prison.

As a progressive former Democrat in Utah, the most reliably conservative state in the country, Rocky Anderson is no stranger to long odds or short shrift. Among other things, Anderson has been a fierce opponent of the Iraq invasion, supports gay marriage and is an ardent environmentalist. (Think former London mayor Ken Livingstone surrounded by conservative Mormons.)

As the former mayor of Salt Lake City, Utah’s capital and largest city, he also has a knack for framing an agenda in search of the broadest possible audience. “We don’t talk about gay liberation in Utah,” he told me in an interview in 2005. “We talk about healthy families and strong communities and say that in the most intimate aspects of our lives the government ought to butt out.” He served two terms before bowing out voluntarily.

In the next year, he’ll have to harness both that experience and savvy for the task he has now set himself: launching a new political party, the Justice party, and running for president in 2012.

His agenda is a familiar one on the left. Broadly speaking, he wants to break the hold of corrupting corporate influence on the two main parties and give a voice to ordinary working people. It also chimes with the general thrust of the Occupy movement, even though the latter has steered clear of engagement with electoral politics.

“The more time has gone on, the more it has become clear that we’re not going see change in this country with these two parties,” he says. “There are lots of good individuals in the Democratic party, [but] without Democrats voting the way they did in Congress, we wouldn’t have invaded Iraq. We wouldn’t have suffered as a nation because of these Bush tax cuts.

“Obama received more money from Wall Street than any presidential candidate ever. And they got a great return on their investment.”

This would represent the first attempt to apply the principles of the Occupy movement within the electoral area. Anderson points out discussions about launching the party preceded the emergence of the Occupy Wall Street. But while there are no organisational links, he says there is plenty of common ground. “There is clearly a convergence of interests regarding the concerns we have and the concerns of Occupy Wall Street. There’s little I’ve heard from the Occupy movement that I would disagree with and I think there’s little we support that they would disagree with.”

Anderson believes progressives have been paralysed by the fear that they’ll be accused of acting as a Trojan horse for the right; and their inaction has resulted in growing cynicism and political and economic deterioration.

“As long as the fear of being a spoiler prevents people from moving in a direction that will change the corrupt system that’s in place, then we’ll never see change in this country,” he says. “At least, we’ll never see changes move in a positive direction. The choice people have now is to either support a very different way that would signal a revolution and vast correction of the systemic problems in our government – or they can carry on going in the same direction they have been going all these years that’s resulted in so much tragedy for people in this country and the world.”

“It’s a perfect storm for an alternative party that would be a major force in American politics,” says Anderson. “The system’s completely broken. Everyone in this country knows that’s why we’re not seeing policies coming from the White House or Congress that really serve the interests of the American people. They keep selling out. Not because they’re bad people, but because they’re part of the system.

“We don’t only have a two-tier economic system in this country. We have a two-tier judicial system, where the rich and powerful don’t have to worry about violating the law. Not one person from Wall Street has been arrested, charged or convicted for what has happened during this financial crisis.”

“Rocky Anderson’s Radical Third Way” – The Guardian

From wikipedia:

As Mayor, Anderson rose to nationwide prominence as a champion of several national and international causes, including climate protection, immigration reform, restorative criminal justice, GLBT rights, and an end to the “war on drugs”. Before and after the invasion by the U.S. of Iraq in 2003, Anderson was a leading opponent of the invasion and occupation of Iraq and related human rights abuses. Anderson was the only mayor of a major U.S. city who advocated for the impeachment of President George W. Bush, which he did in many venues throughout the United States.

Formerly a member of the Democratic Party, Anderson expressed his disappointment with that Party in 2011,[16] stating “(t)he Constitution has been eviscerated while Democrats have stood by with nary a whimper. It is a gutless, unprincipled party, bought and paid for by the same interests that buy and pay for the Republican Party.

For those of you who still believe voting for a third party is akin to voting for the republicans, I kindly point you to Michael J. Smith’s unfinished Stop Me Before I Vote Again— in particular What’s the matter with… liberals? and What is to be done?— and remind you that, in fact, voting for a democrat is nearly akin to voting for the republicans.

I respect those who continue to vote for Democrats for fear of what the Republicans would do to reproductive & LGBT rights, not to mention the legacy of republican judicial appointees. But, it’s quite clear that the Democratic party has been shifting steadily rightward since the 80s. Without a genuine liberal/progressive (both measly words with dubious histories – I am happy that Anderson selected the word “Justice” for his party) threat to the dems, they have no incentive to stop that drift. Which means the few rights you think you’re protecting by sticking with the dems could easily be discarded a few years from now– take the Obama administration’s recent decision to override the FDA on Plan B– just as any non-sham commitment to civil liberties, peace, education, healthcare, and economic justice has been completely rejected by the Dems. So even those who still believe there’s something to be salvaged in the Democratic party ought to consider the role third parties can play in shifting the center back to somewhere left of Reagan.

Personally, there’s no way I can support a president or a party who refuses to prosecute financial criminals despite the destruction they’ve perpetrated; who believes education and prisons ought to be privatized; who quietly ignores the consequences of our “war on drugs” and our obscenely high incarceration rate; who “ends the war” while exponentially increasing the number of drone strikes on countries we’re not even at war with; who is bought and owned by corporate interests including wall st., pharma, big agriculture, and the military-industrial complex; who authorizes the murder of Americans citizens without due process and then refuses to veto a bill stating that all of America is a battleground, thus authorizing the indefinite detention of anyone, including citizens, without a charge or trial … these, to me, are all deal breakers. I will not compromise on these issues out of fear that the other guy is worse.

And so I look forward to having a real candidate to vote for (that is, presuming he can make it on the ballot, unlikely), rather than a symbolic write-in or abstain. Its worth noting that around half of America’s eligible-to-vote population stays home (or more likely, is stuck at work) each election. Not voting could be construed as apathy. Or it could be construed as disapproval of both candidates – of voting “no” on the system itself. So when one considers that half of the population is effectively rejecting the system, it leaves a lot of potential for mobilization around a new paradigm. I’m not at all optimistic, but I’m certainly not delusional enough to vote for any more Democrats.

Economics as a moral question

So, “Does the system behave the way we want it to behave?” is ultimately a moral question, one that we are banned from asking. In economics, this is exactly the sort of a question we’re not allowed to ask, because economics is supposed to be a positive science, not a normative science. The difference is clear: positive statements should describe things as they are (“facts only, baby”), whereas a normative statement describes things the way we want them to be.

Let’s take Milton Friedman, who was, of course, the biggest proponent of positive economics. He wrote the famous essay “Economics as a Positive Science.” In that essay, on the first page, you will find the following sentence: “Economics should be a positive science.” Now, please tell me if that is a positive or a normative statement.

Interview with Tomas Sedlacek, author of The Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Street

HT NakedCapitalism

Declaration of the Occupation of New York City

http://nycga.cc/2011/09/30/declaration-of-the-occupation-of-new-york-city/

As we gather together in solidarity to express a feeling of mass injustice, we must not lose sight of what brought us together. We write so that all people who feel wronged by the corporate forces of the world can know that we are your allies.

As one people, united, we acknowledge the reality: that the future of the human race requires the cooperation of its members; that our system must protect our rights, and upon corruption of that system, it is up to the individuals to protect their own rights, and those of their neighbors; that a democratic government derives its just power from the people, but corporations do not seek consent to extract wealth from the people and the Earth; and that no true democracy is attainable when the process is determined by economic power. We come to you at a time when corporations, which place profit over people, self-interest over justice, and oppression over equality, run our governments. We have peaceably assembled here, as is our right, to let these facts be known.

They have taken our houses through an illegal foreclosure process, despite not having the original mortgage.
They have taken bailouts from taxpayers with impunity, and continue to give Executives exorbitant bonuses.
They have perpetuated inequality and discrimination in the workplace based on age, the color of one’s skin, sex, gender identity and sexual orientation.
They have poisoned the food supply through negligence, and undermined the farming system through monopolization.
They have profited off of the torture, confinement, and cruel treatment of countless animals, and actively hide these practices.
They have continuously sought to strip employees of the right to negotiate for better pay and safer working conditions.
They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.
They have consistently outsourced labor and used that outsourcing as leverage to cut workers’ healthcare and pay.
They have influenced the courts to achieve the same rights as people, with none of the culpability or responsibility.
They have spent millions of dollars on legal teams that look for ways to get them out of contracts in regards to health insurance.
They have sold our privacy as a commodity.
They have used the military and police force to prevent freedom of the press. They have deliberately declined to recall faulty products endangering lives in pursuit of profit.
They determine economic policy, despite the catastrophic failures their policies have produced and continue to produce.
They have donated large sums of money to politicians, who are responsible for regulating them.
They continue to block alternate forms of energy to keep us dependent on oil.
They continue to block generic forms of medicine that could save people’s lives or provide relief in order to protect investments that have already turned a substantial profit.
They have purposely covered up oil spills, accidents, faulty bookkeeping, and inactive ingredients in pursuit of profit.
They purposefully keep people misinformed and fearful through their control of the media.
They have accepted private contracts to murder prisoners even when presented with serious doubts about their guilt.
They have perpetuated colonialism at home and abroad. They have participated in the torture and murder of innocent civilians overseas.
They continue to create weapons of mass destruction in order to receive government contracts. *

To the people of the world,

We, the New York City General Assembly occupying Wall Street in Liberty Square, urge you to assert your power.

Exercise your right to peaceably assemble; occupy public space; create a process to address the problems we face, and generate solutions accessible to everyone.

To all communities that take action and form groups in the spirit of direct democracy, we offer support, documentation, and all of the resources at our disposal.

Join us and make your voices heard!

*These grievances are not all-inclusive.

“What the Country Needs is a New New Deal”

Compelling & accessible argument for a Jobs Guarantee program from L. Randall Wray & Stephanie Kelton:

The truth is simple and contrary to these views. Business will not hire more workers until it has more sales. Consumers will not spend more until they’ve got more jobs. A private-sector recovery requires 300,000 new jobs every month. But the private sector doesn’t need 300,000 new workers per month to meet prospective sales.

The new jobs can only come from the federal government—the only economic entity that can afford to hire. Obama’s 1 million infrastructure jobs is a nice down payment, but it is only three month’s worth. New workers will create the sales that firms need to justify new hiring. Still, we must think bigger if we are to create 20 million jobs.

There is a way to do that: The government could serve as the “employer of last resort” under a job guarantee program modeled on the WPA (the Works Progress Administration, in existence from 1935 to 1943 after being renamed the Work Projects Administration in 1939) and the CCC (Civilian Conservation Corps, 1933-1942). The program would offer a job to any American who was ready and willing to work at the federal minimum wage, plus legislated benefits. No time limits. No means testing. No minimum education or skill requirements.

The program would operate like a buffer stock, absorbing and releasing workers during the economy’s natural boom-and-bust cycles. In a boom, employers would recruit workers out of the program; in a slump the safety net would allow those who had lost their jobs to continue to work to preserve good habits, making them easier to re-employ when activity picked up. The program would also take those whose education, training or job experience was initially inadequate to obtain work outside the program, enhancing their employability through on-the-job training. Work records would be maintained for all program participants and would be available for potential employers. Unemployment offices could be converted to employment offices, to match workers with jobs in the program, and to help private and public employers recruit workers.

Funding for the job guarantee program must come from the federal government—and the wage should be periodically adjusted to reflect changes in the cost of living and to allow workers to share in rising national productivity so that real living standards would rise—but the administration and operation of the program should be decentralized to the state and local level. Registered not-for-profit organizations could propose projects for approval by responsible offices designated within each of the states and U.S. territories as well as the District of Columbia. Then the proposals should be submitted to the federal office for final approval and funding. To ensure transparency and accountability, the Labor Department should maintain a website providing details on all projects submitted, all projects approved and all projects started.

http://www.truthdig.com/report/item/with_300_billion_the_president_can_reduce_unemployment_to_zero_20110908

My friend Dan heckles Mitt Romney, Romney declares “corporations are people too.”

“We have to make sure that the promises we make in Social Security, Medicare and Medicaid are promises we can keep, and there are various ways of doing that,” Mr. Romney said. “One is we can raise taxes on people.”

“Corporations!” the protesters shouted, suggesting that Mr. Romney, as president, should raise taxes on large businesses. “Corporations!”

“Corporations are people, my friend,” Mr. Romney responded, as the hecklers shouted back, “No they’re not!”

“Of course they are,” Mr. Romney said, chuckling slightly. “Everything corporations earn ultimately goes to people. Where do you think it goes?”

When someone in the front row angrily suggested that “it goes in their pockets,” Mr. Romney, becoming increasingly animated, asked: “Whose pockets? People’s pockets!”

Romney to Hecklers: ‘Corporations Are People’ (NYT)

So not only is this exchange awesome/horrifying in it’s own right, but that handsome man heckling Romney in the above video is my old friend Dan. We went to high school together, he took over the ACLU club after I graduated, and also ran a successful student council presidency campaign on the platform “MAKE SCHOOL LESS F****D UP.”

Go Dan! So happy you’re still fighting the good fight. I’m totally beaming right now & full of CHS pride. Looking forward to the revival of your student council platform on a national scale.

Anyway, Dan’s out in Iowa now working for the Iowa Citizens for Community Improvement so if you enjoyed his performance consider a donation.

The full exchange:

If the news is crushing your spirit, I highly recommend some Wendell Berry

The outcry in the face of such obvious truths is always that if they were implemented they would ruin the economy. The peculiarity of our condition would appear to be that the implementation of any truth would ruin the economy. If the Golden Rule were generally observed among us, the economy would not last a week. We have made our false economy a false god, and it has made blasphemy of the truth. So I have met the economy in the road, and am expected to yield it right of way. But I will not get over. My reason is that I am a man, and have better right to the ground than the economy. The economy is not god for me, for I have had to close a look at its wheels. I have seen it at work in the strip mines and coal camps of Kentucky, and I know that it has no moral limits. It has emptied the country of the independent and the proud, and has crowded the cities with the dependent and the abject. It has always sacrificed the small to the large, the personal to the impersonal, the good to the cheap. It has ridden to its questionable triumphs over the bodies of small farmers and tradesmen and craftsmen. I see it, still, driving my neighbors off their farms into the factories. I see it teaching my students to give themselves a price before they can give themselves a value. Its principle is to waste and destroy the living substance of the world and the birthright of posterity for a monetary profit that is the most flimsy and useless of human artifacts.

Though I can see no way to defend the economy, I recognize the need to be concerned by the suffering that would be produced by its failure. But I ask if it is necessary for it to fail in order to change; I am assuming that if it does not change it must sooner or later fail, and that a great deal that is more valuable will fail with it. As a deity the economy is a sort of egotistical French monarch, for it apparently can see no alternative to itself except chaos, and perhaps that is its chief weakness. For, of course, chaos is not the only alternative to it. A better alternative is a better economy. But we will not conceive the possibility of a better economy, and therefore will not begin to change, until we quit deifying the present one.

A better economy, to my way of thinking, would be one that would place its emphasis not upon the quantity of notions and luxuries but upon the the quality of necessities. Such an economy would, for example, produce an automobile that would last at least as long, and be at least as easy to maintain, as a horse. It would encourage workmanship to be as durable as its materials; thus a piece of furniture would have the durability not of glue but of wood. It would substitute for the pleasure of frivolity a pleasure in the high quality of essential work, in the use of good tools, in a healthful and productive countryside. It would encourage a migration from the cities back to the farms, to ensure a work force that would be sufficient not only to the production of the necessary quantities of food, but to the production of food of the best quality and to the maintenance of the land at the highest fertility — work that would require a great deal more personal attention and care and hand labor than the present technological agriculture that is focused so exclusively upon production. Such a change in the economy would not involve large-scale unemployment, but rather large-scale changes and shifts in employment.

“You are tilting at the windmills,” I will be told. “It is a hard world, hostile to the values that you stand for. You will never enlist enough people to bring about such a change.” People who talk that way are eager to despair, knowing how easy despair is. The change I am talking about appeals to me precisely because it need not wait upon “other people.” Anybody who wants to do so can begin it in himself and in his household as soon as he is ready– by becoming answerable to at least some of his own needs, by refusing the glamorous and the frivolous. When a person learns to act on his best hopes he enfranchises and validates them as no government or public policy ever will. And by his action the possibility that other people will do the same is made a likelihood.

From Discipline and Hope by Wendell Berry, from his book A Continuous Harmony (1972).

Modern Money Primer

There is burgeoning school of economics called Modern Money Theory (MMT) that I really think warrants consideration. Not only is it theoretically quite intriguing, but if accurate, has tremendous political and social implications. One might even say that (perhaps in contrast to the Obama administration), it is actual cause for hope.

So I’d like to bring MMT to your attention. If you have already encountered, and dismissed, MMT, I’d like to encourage you to give it a second look. If you have already encountered, and dismissed, the entire field of Economics, I’d like to propose MMT as the exception to the rule.

Specifically, I suggest you check out the Modern Money Primer, recently begun by L. Randall Wray, one of the more prominent MMT scholars:

http://neweconomicperspectives.blogspot.com/p/modern-money-primer-under-construction.html

This primer is meant to be accessible introduction to someone with no prior understanding of MMT or even Economics. Wray will be adding a chapter every Monday for the next year, and responding to comments every Wednesday. (And for those of you who can’t possibly wait a year, I highly recommend Wray’s textbook Understanding Modern Money)

Okay okay but what is MMT?

Well, Wray and his colleagues will do a much better job than I of explaining, but here’s the gist as I understand it:

  • In a fiat economy, public debt = private wealth
  • Taxes don’t fund government spending; taxes create demand for fiat currency so that people are willing to sell goods & services to the government in exchange for said currency
  • Taxation is a sufficient (though not necessary) means to create demand for fiat currency (& thus prevent against undesirable levels of inflation)
  • and finally, perhaps most radically:

  • By serving as an “Employer of Last Resort”, essentially hiring anyone who is willing but unable to find work in the private sector and paying them a living wage, the government can ensure both full employment and price stability.

If true, this is pretty huge. Calls for “austerity” and the need to “reduce the deficit” become specious; there is an economically-sound mechanism to employ everyone at a living wage; not to mention that the government can suddenly “afford” all kinds of neat social programs, like universal health care, daycare and public transportation.

Crazy talk!
Lunacy!
Socialism!
Zimbabwe! Wiemar Germany!
Nothing you just said made any sense to me!
Rebecca, what the hell makes you, with your film degree, qualified to talk about economics?!

Yes, in many ways MMT runs completely counter to our conventional understanding of money. It sounds insane at first. But I think, if you give Wray a chance, you will see all the above points (except perhaps the last one) thoughtfully addressed.

And unlike most branches of economics, which could be accused of hiding behind intimidating jargon and complicated mathematical models rooted in mythology, the folks at New Economic Perspectives (the group of scholars behind the primer) are actively soliciting comments & critiques from their readers in an effort to make this primer as clear and thorough as possible. So I encourage you to check it out and ask questions and follow along over the next 50 weeks, if that’s your sort of thing.

[[Modern Money Primer]]

PS. If you contacted me nearly a year ago about that economics discussion list I wanted to start, apologies for never actually getting around to making it. I’m gonna try and get that started up soon, for real. Perhaps we can work our way through the Modern Money Primer together. Everyone who requested an invite will get one. If you didn’t and want in, let me know!